Swift, Inc., produces only two products, AAA and BBB. These account for 60% and 40% of the total sales of Swift,

respectively. Variable costs (as a percentage of sales peso) are 60% for AAA and 85% for BBB. Total fixed costs

are P150,000. There are no other costs.

1) What is Swift's breakeven point in peso?
 

2) Assume that the total fixed costs of Swift increase by 30%, what amount of total sales would be necessary togenerate a net income of P9,000?

Answer rating: 100% (QA)

To calculate Swifts breakeven point in pesos we need to determine the sales revenue required to cove... View the full answer